Sorry, wrong (class-action) number

by Walter Olson on November 20, 2003

Maryland state judge Steven I. Platt “has knocked down a class-action settlement involving late fees on telephone bills, saying the attorneys’ request for $13 million in legal fees was excessive”. Under the terms of settlement of the four-year-old lawsuit, Verizon Maryland had agreed to set aside an impressive-sounding $51.9 million for refunds, but in fact only 18,000 of the 2-million-plus eligible customers submitted claims for their refund of (in most cases) $6, “making the settlement worth less than $200,000.” “Virtually all of the money on the table would have gone to the lawyers, and only a very small share would have gone to the class members themselves,” said Michael J. Quirk, a staff attorney for Trial Lawyers for Public Justice, which opposed the settlement. (Caroline E. Mayer, “Md. Judge Cites Legal Fees In Rejecting Phone Accord”, Washington Post, Nov. 18).

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